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Moody’s Puts Poland on Negative Outlook

Ratings agency Moody’s, has placed Poland on a negative outlook from stable, in another major blow to the new Law & Justice government.

However, the agency kept the country’s rating unchanged at A2 which will come as some relief after January’s warning that a downgrade was on the horizon.

Moody’s pointed to the increase in Poland’s increased expenditure and ‘impairments to the investment climate.’ It cited unpredictable policy implementation by the government to the reason for its decision.

Standard & Poor’s lowered Poland’s credit rating in January from to BBB+ from A-. Similarly, it cited the new government and the weakening of the independence of key institutions in the country.

Prime Minister Beata Szydlo claimed Standard and Poor’s move was politically-motivated. The government has insisted that Poland’s economy is stable.